...and away we go into 2009!

 

Will Housing Finally Rebound in 2009?
The housing industry couldn't be happier that 2008 is over.  This past year had many twists and turns that ultimately led to decreased consumer confidence in housing.  Even though financing ended the year at historic lows, many buyers are still sitting on the sidelines because they are concerned that if they purchase a home it will go down in value right away. 

The primary reason home prices declined in 2008 was the culmination of the last several years where we built more homes than necessary.  This has caused an over-supply of homes.  Whenever you have more sellers than buyers, home prices always fall.  But there is light at the end of the tunnel.  Existing home inventories are projected to be below six months worth by the end of this spring.  This will signal the bottoming of the housing market and home prices will start to rise again by this summer.

While this is good news for the housing industry, your clients need to act now and purchase their next home while home prices and interest rates are extremely low.  Remember...you don't make money selling your home...you make money by buying your home right.

What happened to rates last week?
We lost give or take approximately .50% to rate (rates got worse) in another holiday shortened week.

Many consumers have waited too long to lock in their rates - erroneously thinking rates would could continue to decline only to find out that they can't even get the rate they were quoted a week ago.  Friday's stock market surge of 258 points helped to take the wind out of mortgage backed securities which led to higher rates.
Many believe that the stock market is poised for a big run as stocks are at bargain basement prices.  If this occurs it will put additional pressure on rates.
 
What to watch out for this week:
The following are the major economic reports that will hit the market this week.  They each have the ability to affect mortgage rates. I will watch these reports closely for you and let you know if there are any big surprises.
Date         ET           Release                               For
5-Jan       10:00       Construction Spending            Nov
6-Jan       10:00       Factory Order                       Nov
7-Jan       10:35       Crude Inventories                  2-Jan
8-Jan       8:30        Initial Claims                          3-Jan
8-Jan       14:00       Consumer Credit                    Nov
9-Jan       8:30        Average Workweek                 Dec
9-Jan       8:30        Hourly Earnings                      Dec
9-Jan       8:30        Nonfarm payrolls                     Dec
9-Jan       8:30        Unemployment Rate                Dec
9-Jan       10:00       Wholesale Inventories             Nov